The U.S. dollar rose against most other major currencies as the government reports signaled about the stable recovery of the U.S. economy, while other countries were troubled either with internal problems or by the impact of the European debt crisis on the global markets; the U.S. currency was experiencing volatility versus the Japanese yen and fell against it by the end of the week, also dropping against the Canadian dollar.
The greenback was advancing steadily against the euro, after the dollar’s decline at the end of the previous week, as the concerns about the crisis in the European Union weren’t quelled by the rescue plans and the loan package, raising the doubts about of the future of the common European currency. The dollar dropped against the pound at the beginning of the week on the outlook that the new government will form the coalition and may be able to deal with the nation’s budget deficit, yet concerns for the nation’s debt and speculation that the coalition won’t hold caused the U.K. currency to decline against the greenback in the second half of the week.
The Canadian dollar was rising against the U.S. currency on good fundamentals but plunged at the end of this week after the EU woes cut the prices for crude oil, the biggest Canadian export, yet managed to end this week higher than the opening level. The dollar struggled against the yen this week, rising one day and returning to almost the same level the next day; in the end the favorable data about the corporate earnings allowed the Japanese currency to rise above the opening level this week, though the appreciation wasn’t significant. The fundamentals in the U.S., like the retail sales and the unemployment value, were supporting to the dollar.
EUR/USD closed at 1.2378 after opening at 1.2915 and reaching its weakly high of 1.3093. GBP/USD closed at 1.4535 after it opened at 1.4879. USD/CAD closed at 1.0316 after opening at 1.0343 and reaching the weekly low of 1.0107. USD/JPY closed at 92.32, falling from its opening level of 92.42.
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